Backlash as Harmony proposes minting 4.97B tokens to reimburse victims

The staff behind the Concord blockchain undertaking has proposed the minting of as much as 4.97 billion value of its native token ONE to compensate victims of the $100 million Horizon Bridge hack in June.

The proposal has been met with a big quantity of backlash from members of the group, with many highlighting considerations that such a big issuance of latest tokens would lead to inflationary strain on the asset and convey its worth down.

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This proposal is disappointing. There is no such thing as a different choices. Appears to be both minting extra tokens or minting extra tokens. If we disagree, there can be no disbursement as per your proposal.

— night time (@night7576) July 27, 2022

In its proposal on Tuesday through the undertaking’s group web page, the Concord staff famous that 65,000 wallets throughout 14 totally different belongings have been impacted by the hack and that they’ve “labored tirelessly to brainstorm and develop paths in direction of reimbursing” victims.

The Concord staff said that it couldn’t provide any answer that leads to instant reimbursement given “the present state of Concord’s treasury,” so it provided two choices that contain minting a number of billion ONE tokens through a tough fork to the Concord blockchain, which might be given to victims of the hack.

The primary choice provided to supply an estimated 100% reimbursement through 4.97 billion new ONE tokens, whereas the second choice estimates a 50% reimbursement with 2.48 billion ONE tokens over a three-year interval.

The staff is awaiting group suggestions earlier than continuing ahead, however preliminary responses already look like overwhelmingly adverse, with most feedback on the group web page or on Twitter voicing sturdy considerations with the concepts.

I’ll vote no on this 100%. Its not the reply. Use a part of the treasury to refund the suppliers and get every little thing is sweet standing and transfer ahead. The buyers and group shouldnt must pay for it.

— mcone.one (@mconecrypto) July 27, 2022

The group has additionally famous {that a} comparable methodology of restoration was employed by the Terra eco-system following its $40 billion meltdown in Might.

On the group web page, person BSKA wrote “That is completely rubbish, scrap the entire proposal and return to the drafting board Workforce!” Whereas CJL famous, “let me get this straight: no phrase for weeks […] and the proposal you come again with is a LUNA-style arduous fork and a 3-year vest?”

Associated: Notorious North Korean hacker group recognized as suspect for $100M Concord assault

Group member shwaver recommended this proposal will find yourself driving builders away from the Concord eco-system:

“You’ve carried out this utterly backwards. So as to afford compensation, you want to first reestablish a secure ecosystem e.g. repeg or various so tasks have a purpose to construct right here, individuals have a purpose to make long-term investments, and so forth.”

“This purely inflationary answer does the other–making a monetary incentive to promote all ONE now and construct elsewhere–whereas additionally punting on the repeg,” they added.

In June, the Horizon Bridge to the Concord layer-1 blockchain was exploited for $100 million.

Later within the month, the staff tried to supply a $1 million bounty to the hacker who exploited the bridge to return the funds — though the technique seemingly failed.

Concord’s ONE token is priced at $0.02 on the time of writing, with a complete provide of 13.5 billion tokens, based on Coinmarketcap.

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